Wyman-Gordon lot is the 'destination'

The group that wants to develop a slot machine casino in the city has officially designated the 14-acre Wyman-Gordon property on Madison Street as the location for its “destination gaming facility.”

Mass Gaming & Entertainment LLC, one of four applicants for the only slots license that will be awarded by the state, formally announced its site selection Sunday.

The $200 million plan also calls for development of a world-class, full-service hotel downtown.

Additional details are expected to be made public in the coming weeks.

Neil G. Bluhm, chairman of MGE, said his group, a subsidiary of Rush Street Gaming of Chicago, has spent more than a year looking for the right location for its slots development.

He said he believes the vacant Wyman-Gordon property is by far the best location for its new gaming facility.

“We have a proven track record for entering emerging casino markets and identifying the right metropolitan area which, coupled with the right neighborhood, creates a successful entertainment destination,” Mr. Bluhm said in the statement Sunday.

“We are confident that our plan will create significant economic development for Worcester and we look forward to working closely with the city in bringing this project to reality,” he added.

City Manager Michael V. O’Brien called MGE’s formal selection of the Wyman-Gordon site an important first step.

He said that can now trigger local discussions and a formal review of the slot parlor proposal.

“We look forward to the weeks ahead and learning more on the intricate details of their proposal,” Mr. O’Brien said. “The MGE team recognizes the value of our community and our goals and objectives for economic development. This is a great place to start these discussions.”

The Massachusetts Gaming Commission, which will be awarding the slot parlor license, requires a local “host agreement” between the city and the gaming entity.

Because of the complexities involved, Mr. O’Brien said he intends to seek professional services to assist the city in coming up with that agreement.

“This agreement will require very complex terms and conditions,” the manager said. “Gaming is a world unto itself.

“I have interviewed firms with expertise on all facets of gaming, as well as extensive knowledge of best practices for mitigation and protections for local communities and how to leverage the best for the city,” he added. “I intend to engage these professional services shortly.”

Mr. O’Brien said the Massachusetts Gaming Commission has set aside $75,000 for Worcester from MGE’s $400,000 application fee to underwrite those costs.

He said all costs above $75,000 for the entire local approval process, from start to finish, will be covered by the developer.

With the site announcement, Mayor Joseph M. Petty said the City Council will soon be able to begin working with the city manager and soliciting public input on the proposal.

He said he will ask the city manager for an analysis of the state casino statute and a timeline that has to be followed so the City Council will have an idea of what has to be done and by when.

Mr. Petty said he has great confidence in the plan he has put forth to solicit neighborhood input. He wants to have the City Council’s Economic Development and Public Safety committees conduct joint meetings in the neighborhoods to gather input and provide the city manager with direction.

“I have not seen the plans yet; I’d like to see what they look like,” the mayor said in an interview Sunday night. “We will now follow a process with the city manager to get neighborhood input. It will be professionally done, and I think having the two council committees holding joint hearings in the neighborhoods will work out well. The end result is that the people of Worcester will have the final say on this.”

District 5 City Councilor William J. Eddy said the issue that will be before the city’s elected officials is not their individual positions on gaming, but whether the council can take a “responsible and professional approach” in working with the city manager on crafting the best possible host agreement for the city and then putting the matter before the voters.

He said he has great respect for the developers who want to make a substantial investment in Worcester. At the same time, he said, the City Council needs to hear from residents on their thoughts about such a proposal and how it might impact them.

“We owed it to them (MGE) and the people of Worcester to be inclusive in our dealings with the city manager,” Mr. Eddy said in an interview. “It is our job to work with the city manager and provide some guidance in crafting an agreement for the city, and then let the voters of the city decide whether this is a good idea or not. It should have nothing to do about our viewpoints on gaming.”

Voters will have the ultimate say on whether there is a slot machine casino here. After a host agreement is reached between the city and developer, a citywide referendum would be held to approve or reject the casino plan.

In Worcester’s case, it would not be able to hold a referendum until after a host community agreement is executed and an applicant makes a request that a referendum be scheduled. The referendum would have to be scheduled 60 to 90 days after such a request.

In 2007, a nonbinding referendum question appeared on the Worcester ballot, asking voters whether they supported having a casino in the city; 52.3 percent of those who voted supported the idea while 47.7 percent opposed it.

Three other casino developers have paid the initial $400,000 application fee to compete for the slot casino license. They are the owners of Raynham and Plainridge racetracks and a fourth bidder who has yet to identify a casino site.

The Wyman-Gordon property, located at 105 Madison St., is off Kelley Square. It extends from the Canal District to the Green Island neighborhood and is within a half-mile of Interstate 290, two miles from Route 146 and less than one mile from the center of downtown.

The property, assessed at about $4.3 million by the city, is currently under an option to Carpenter Worcester Associates, which is an affiliate of Carpenter & Co. a hotel developer based in Cambridge.

As part of the overall development, Carpenter plans to develop a first-class, full-service hotel on a separate downtown site that would include restaurants, meeting rooms and a ballroom.

The Wyman-Gordon property has been vacant for nearly a dozen years. Wyman-Gordon, a maker of metal parts and products, operated a sprawling complex there for more than 100 years. Demolition of the buildings on the property began in 2001.

Wyman-Gordon is now owned by Precision Castparts Corp. of Portland, Ore., and it continues to operate other facilities in Worcester.

Ronnie Brooks, manager of property and services for Wyman-Gordon’s Eastern Division, said the company is “thrilled” that the slot parlor proposal could return the vacant site to productive reuse.

He said that will benefit Wyman-Gordon’s neighbors and generate much-needed revenue and jobs for Worcester.

“It has long been Wyman-Gordon’s goal to ensure that this parcel, so important to the history of Wyman-Gordon and the city, would be redeveloped as a central element contributing to the revitalization of the city,” Mr. Brooks said. “Wyman-Gordon will continue to keep our other Worcester facilities in full operation and looks forward to being a good neighbor to the casino.”

Redevelopment of that property has long been considered one of the keys to the city’s economic development efforts because of its size and proximity to downtown and major transportation routes (I-290 and Route 146).

The company hired Cushman & Wakefield several years ago to market the property and attempt to identify a qualified developer, but those efforts produced no results.

Because the state of the economy had depressed property values, the company decided in 2009 to pull back on marketing the property.

Frustrated by the lack of action on the Wyman-Gordon site, the City Council in December decided to explore the feasibility of taking land by eminent domain. That action came when there was some talk about the property being eyed for a slots parlor.

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